JTEKT

Basic Information

Stock Code
6473
Industry
Machinery
Category Detail
Iron, Steel & Metal Products
Prefecture
Aichi Prefecture
Establishment Year
January 1935
Listing Year
May 1949
Official Website
https://www.jtekt.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Oiles Industrial, Hi-Hiist, Tsubaki Nakashima, NSK, Nachi Fujikoshi, MinebeaMitsumi, Nippon Thompson, THK, DENSO, Daido Metal, Aisin

Overview

JTEKT is one of the 13 major Toyota Group companies founded in 1935, a machinery manufacturer that has established a global position in automotive parts, bearings, and machine tools.

Current Situation

JTEKT achieved consolidated net sales of approximately 1.4284 trillion yen and operating profit of approximately 36.4 billion yen in the fiscal year ended March 2022, expanding its business globally. It has strengths in manufacturing automotive steering and drivetrain parts as well as bearings. In the machine tool sector, it holds a position as one of Japan's major companies, advancing product development using advanced mechatronics technology. As a member of the Toyota Group, it has a stable order base and is also pursuing new businesses such as power assist suits. It emphasizes contributions to local communities and environmental considerations, promoting a management strategy for sustainable growth. Currently, it is focusing on strengthening manufacturing bases at home and abroad and developing products compatible with IoT and autonomous driving technologies. There are risk factors such as competition and fluctuations in raw material prices, but it maintains market competitiveness through diversified, technology-led business development.

Trivia

Interesting Facts

  • Boasts stable management as one of the 13 major Toyota Group companies
  • Global company with numerous production bases worldwide
  • Early entry into power assist suit manufacturing in Japan
  • Possesses one of Japan's leading bearing production capacities
  • One of Japan's four major machine tool manufacturers
  • Technological prowess in developing and selling Japan's first safety PLC products
  • Headquartered in Kariya, Aichi Prefecture, a major hub for automotive parts manufacturing
  • Inherited Torsen LSD technology from Bosch
  • Unified diverse business brands under 'JTEKT' in 2022
  • Operates the volleyball team 'JTEKT STINGS'
  • Strengthened overseas expansion by acquiring Indian steering manufacturer as subsidiary
  • Close capital and transaction ties with many Toyota Group companies
  • Current structure formed in 2006 by merger of Koyo Seiko and Toyoda Machine Works
  • Acquired needle bearing business from U.S. Timken
  • Diversified operations including home elevators and other residential equipment

Hidden Connections

  • Key node in Toyota Group's parts manufacturing network
  • Enhanced industry competitiveness by acquiring Torsen LSD technology from Bosch
  • Ranks among Japan's four major machine tool makers alongside Yamazaki Mazak and others
  • Production diversification strategy through multinational operations in U.S., Indonesia, Brazil, etc.
  • Strong 22.5% capital relationship with Toyota Motor forms stable demand base
  • Promoting integrated group operations through subsidiary consolidations and brand unification
  • Strengthening product lines by acquiring steering column-related companies
  • Indispensable technology development partner for Toyota Group's manufacturing innovations

Future Outlook

Growth Drivers

  • Expanding demand for parts in electrification and autonomous driving technologies
  • Growth in global automotive production
  • Rising needs for energy-saving and safety technologies
  • Advancement of smart factories using IoT and AI
  • Growth in market for health and labor support power assist products
  • Increasing investments in sustainable mobility products
  • Expansion of automotive markets in emerging countries
  • Technology expansion into diverse industries
  • Increasing demand accompanying Toyota Group's growth strategy
  • Technological innovations for higher quality and differentiation of products

Strategic Goals

  • Global market share expansion in all business areas
  • Achieve 50% reduction in CO2 emissions from previous year
  • New business sales exceeding 100 billion yen
  • Become global leader in safety control products
  • Full implementation of smart manufacturing processes
  • Strengthened promotion of diversity and inclusion
  • Reduced environmental impact across entire supply chain
  • Business model innovation through DX advancement
  • Deepened collaboration with Toyota Group
  • Establishment of symbiotic relationship with local communities

Business Segments

Automotive Parts Manufacturing

Overview
Manufactures drivetrain and steering parts for automakers, supported by high quality and technology.
Competitiveness
Strong collaboration with Toyota Group
Customers
  • Toyota Motor Corporation
  • Nissan Motor Co., Ltd.
  • Honda
  • Suzuki
  • SUBARU
  • Mazda
  • Export-oriented automakers
Products
  • Steering systems
  • Differential gears
  • Drive shafts
  • Power steering units
  • Motors
  • Inverters

Bearing Manufacturing

Overview
Supplies high-precision bearing products to a wide range of industries.
Competitiveness
High-precision machining technology and global manufacturing network
Customers
  • Transportation equipment manufacturers
  • Machine tool manufacturers
  • Industrial machinery manufacturers
  • Aircraft manufacturers
Products
  • Needle bearings
  • Roller bearings
  • General bearings
  • Special bearings

Machine Tool Manufacturing

Overview
Provides high-performance machine tools that meet diverse machining needs.
Competitiveness
In-house multi-axis technology and control systems
Customers
  • Precision parts processors
  • Automotive parts manufacturers
  • Metal processing plants
  • Aerospace parts manufacturers
Products
  • CNC lathes
  • Machining centers
  • Electrical discharge machines
  • Grinding machines

Mechatronics Control Systems

Overview
Develops and supplies highly reliable control equipment, including Japan's first safety PLC.
Competitiveness
Safety standard compliance technology and long track record
Customers
  • General manufacturing
  • Automotive industry
  • Industrial machinery manufacturers
Products
  • Programmable controllers (PLC)
  • Safety control devices
  • Automation systems

Home Equipment Manufacturing

Overview
Provides safe and user-friendly elevators for homes.
Competitiveness
Proprietary mechanism design capabilities
Customers
  • Home builders
  • Renovation contractors
  • Individual customers
Products
  • Home elevators
  • Barrier-free equipment

Competitive Advantage

Strengths

  • High technology for precision parts manufacturing
  • Strong ties with Toyota Group
  • Diverse product lineup
  • International manufacturing and sales network
  • Ongoing investment in R&D
  • High-quality manufacturing management system
  • Proprietary mechatronics technology
  • Abundant patents and intellectual property
  • Solid financial base
  • Competitiveness in global markets
  • Business expansion into diverse industries
  • Proactive new business development
  • Optimal production site placement
  • Product reliability and durability
  • Long-term trust relationships with customers

Competitive Advantages

  • One of Japan's largest bearing production capacities
  • Priority orders within Toyota Group
  • Possession of advanced continuously variable transmission technology
  • Multiple production bases domestically and internationally
  • Broad business from automotive parts to machine tools
  • Proprietary development of mechatronics products
  • First in Japan to launch safety PLC products
  • Pioneering power assist suit business
  • Differentiation through high-precision machining technology
  • Long-term supply contracts with Toyota-affiliated automakers
  • Risk diversification through diversified product portfolio
  • High engineering service capabilities
  • Established sustainable manufacturing processes
  • Aggressive overseas market expansion
  • Robust logistics and procurement network

Threats

  • Global fluctuations in raw material prices
  • Changes in part structures due to electrification of automotive industry
  • Rise of overseas competitors
  • Supply chain disruptions from geopolitical risks
  • Exchange rate instability
  • Cost increases from stricter environmental regulations
  • Delays in adapting to rapid technological innovations
  • Labor shortages in the job market
  • Sudden changes in market demand
  • Obsolescence of existing products due to emerging technologies
  • Supply chain interruption risks
  • International inconsistencies in regulations and laws

Innovations

2022: Mass Production of Power Assist Suits Begins

Overview
Full-scale manufacturing of industrial power assist suits aimed at reducing physical strain.
Impact
Contributes to improved safety in workplaces

2021: Lithium-Ion Capacitor Production Starts

Overview
Developed high-output energy storage devices and established factories to expand into new energy business.
Impact
Prepares for future growth in electric equipment markets

2020: Autonomous Driving-Compatible Steering Technology Developed

Overview
Successfully developed steering products compatible with advanced driver-assistance systems (ADAS).
Impact
Supports automakers' autonomous vehicle development

2023: Smart Factory Transformation via Digitalization

Overview
Promoting factory automation and efficiency projects using IoT and AI.
Impact
20% productivity improvement, advanced quality control

2024: Enhanced Development of Next-Generation Safety PLCs

Overview
Focusing on developing safer and more advanced programmable controllers.
Impact
Improved compliance with domestic and international safety standards

2022: Introduction of Green Manufacturing Processes

Overview
Successfully introduced energy-saving equipment and reduced waste to lower environmental impact.
Impact
10% reduction in CO2 emissions

2021: Innovation in High-Precision Bearing Manufacturing Technology

Overview
Significantly extended product life through nano-level machining technology development.
Impact
Improved customer satisfaction and expanded market share

2020: Development of New Steering Columns for Vehicles

Overview
Launched new products using lightweight, high-strength materials.
Impact
Contributes to improved vehicle fuel efficiency and safety

2023: Expanded Adoption of Environmentally Friendly Materials

Overview
Actively promoting use of recycled materials and biomass resins.
Impact
Successfully reduced environmental impact of products

2024: Strengthened Global R&D Network

Overview
Enhanced collaboration with overseas technical bases to improve R&D capabilities.
Impact
Enables rapid market introduction of new technologies

Sustainability

  • CO2 emissions reduction in manufacturing processes
  • Improved waste recycling rate
  • Environmentally considerate material procurement
  • Environmental conservation through collaboration with local communities
  • Employee environmental awareness programs
  • Strengthened environmental management across the supply chain
  • Strict compliance with safety and health standards
  • Promotion of green energy use
  • Advancement of sustainable product design
  • Energy efficiency improvement programs
  • Promotion of diversity and inclusion
  • Enhancement of corporate ethics and transparency